BUDGET AT A GLANCE The Budget at a glance by icecube

VIEWS: 13 PAGES: 9

									                         2006 – 2008 BUDGET AT A GLANCE

The Budget-at-a-glance is provided to assist the reader in the presentation of the 2006-
2008 Operating and Capital Budgets for the City of Brooks. This is the first time in
Brook’s history that a three year operating and capital budget has been adopted by
Council.

This summary focuses on the 2006-2008 operating and capital budgets and is intended to
be a supplement to the actual operating and capital budgets. It also intends to provide a
broad understanding of budget related facts and issues.

COUNCIL PRIORITIES AND BUDGET

City Council’s retreat took place in the fall of 2004, during which strategic goals &
priorities for the future were discussed. Participating in this process were members of
Council and Directors.

One of the strategic goals/priorities identified was the development of a three year budget
plan. This priority came to fruition with the adoption of the 2006 – 2008 Operating and
Capital Budgets by City Council December 19th, 2005.


BUDGET ASSUMPTIONS

Economy. Brooks continues to experience strong growth, which at present is driven by
three main sectors. Once largely dependent on the oil and gas industry, the Brooks
economy has diversified to create a healthy and stable economy.

          Agriculture – The Availability of ample water from irrigation projects, and a
          large range of businesses encourages continued growth to the agriculture
          economy.

          Oil & Gas Development – There are a number of large explorations and
          production companies as well as numerous oilfield service related firms that are
          located in Brooks with ongoing drilling and exploration that will continue long
          into the future.



                                                                                         1
          Retail & Service Sector – Approximately 25,000 customers live within the
          Brooks trading area. The population growth is paralleled by a growth in the
          retail and service sector, with a number of new business’ opening continuously
          as new opportunities arise.


Population. The City of Brooks has a population of 11,604. We had the fame to claim
of being one of “the Largest Town’s in Alberta prior to our changing status to that of a City
in September, 2005. Complimentary to the change in status, was the City’s trademark
application “Alberta’s Centennial City ™”. The next federal census shall be in June, 2006
and it is anticipated that our population should be in excess of 13,000.
Residential Units. From a building perspective, activity levels are expected to exceed
recent trends. It is estimated for over 590 building permits and 383 new dwellings with a
total building value of $67 million for 2006 - 2008.


Power & Natural Gas Costs. The City of Brooks entered into agreements with
Constellation New Energy for the provision of electrical services and AUMA/Nexen
Marketing for natural gas. It is estimated that over the term of the agreements (5 years
for electrical and 3 for natural gas) the City shall save in excess of one million dollars.


Contributed to Capital. The 10-year capital budget has been updated to include 2015
with projects over the next 10 years totaling over $52 million. The budget includes
contributions to reserves for future projects, and total contribution from Operating for 2006
– 2008 will be $1,033,745.


Utility Rates. To continue to ensure the Utility operations are self-funding and to fund
major capital works projects in water and sewer utilities, users will see the following
increases of 8% to both water and sewer rates, 2% to garbage rates, and 1½ % in
recycling rates in each year 2006 – 2008.




CONCLUSION

The City of Brooks is committed to meeting its priorities and ensuring fiscal stability today
and in the future. The 2006-2008 Operating and Capital Budget facilitate a link between
the City’s mission, vision and strategic priorities. As a result, both the 2006-2008
Operating and Capital Budget have been structured to clearly depict current year budget
issues and identify future financial challenges.




             2006-2008 OPERATING BUDGET OVERVIEW – REVENUES


                                                                                           2
The Current budget provides our residents and businesses the services and amenities
necessary to enjoy the benefits of living and working in Brooks. It offers the same quality
and quantity of services as in 2005.

The 2006-2008 plan includes an estimated one percent (1%) increase to the Residential
taxes for each of the next three years.

The paving tax shall be in its fourth year of implementation, with additional properties
being added as local improvement levies are completed. The purpose of this tax, which
was implemented in 2003 is to collect up front for the re-paving of City Streets, thus
preventing the City from having to borrow in the future for road repairs. The advantage of
this is less debt being carried by the City. The paving tax also expedites improvements
and allows for a scheduled resurfacing plan of the City roadways. Roadways will be
identified from the 2006/2007 pavement management study as to when they will be
resurfaced. In 2005, the lane re-paving tax was implemented and this shall facilitate the
maintenance of existing paved lanes within the City.

This budget continues the implementation of a Recreation Tax. The purpose of this tax
will be to recover the costs of debt financing for part of the Lakeside Leisure Center
Expansion.

Included in the Budget are specific strategies and plans to meet Councils priorities, which
are:

          Continue to work on strategies to improve staff retention and morale;
          Continue to provide adequate resources to ensure exceptional customer
          services;
          Continued partnership with the RCMP          to provide policing services to the
          community and its citizens;
          Continued development and enhancement of city recreational facilities –
          including Phase III of the Lakeside Leisure Center, Skateboard Park , Athletic
          Park, and others;
          Construction of a new Fire Hall;
          Linear Path/Park/Playground/Green Space Development.

The City of Brooks will raise $78,804,515 to provide services in 2006 – 2008, (an average
of over $26,000,000 per year) which includes tax-supported activities, user fees,
contributions to reserves for future projects and utilities which are paid for by water, sewer
and waste management rates. General fund is budgeted at $ 59,900,522 and consists
primarily of tax revenue, as a result of growth, additional user fees and in increase in
provincial funding.




                                                                                            3
In the 2006 – 2008 budgets, net tax revenue contributes an average approximately 45%
of the municipal revenue, with user fees providing an additional 22%. Government grants
7%, and other revenue making up the last 26%. An important note to the readers is that
land sales revenues have NOT been included in these comparative figures and graphs
for this three year budget cycle. Recent annual budgets have shown this figure to range
from 4% to 31% (in 2005) of the budgeted revenues. User fees are derived from almost
all areas of the City’s operations and include revenues from the Utility Fund (water,
sewer, and waste management fees), building permits, planning, engineering, subdivision
development fees, land sale revenue, fire response fees, police and municipal
enforcement licenses and fines and all recreation fees.


                               2006 - 2008 Revenue by Program



                                  Community                    General Govt
                                 Services 11%                      9%
                      Environmental
                           22%

                       Roads 7%                                         Net Taxes
                                                  Protective              45 %
                             Planning and
                             Development         Services 4%
                                 2%




                                 2006 - 2008 Revenue by Activity
                                           Licenses
                                           Permits &      User Fees
                                            Rentals         22%
                                             12%
                             Special Tax                           Draw from
                                10%                                Reserves
                                                                      2%
                          Government
                            Grants
                             7%                        Property Taxes
                                                            45%




             Note:   No Land Development has been included in the above figures. Historically land
                     sale revenues have been approximately 30% of the total operating budgets.



                                                                                                     4
          2006 – 2008 OPERATING BUDGET OVERVIEW – EXPENDITURES

The 2006-2008 Operating Budget includes total expenditures of $59,900,522 including
Utility at $10,385,332.

This three year budget includes inflationary increases, new staffing in the Recreation and
Parks, Protective Services and Public Works departments and funding for the following
new initiatives:

          Increased Funding to Community Organizations ;
          Increased Personnel Costs, including education, travel and new staffing
          positions;
          Contract Services, including building & equipment maintenance;
          Increased Funding for RCMP Policing;
          Increased Contribution to Reserves;
          Other (insurance, legal, finance charges, postage etc).




                            2006 - 2008 Expenditures by Activity


                                        Debt Servicing
                                             4%
                                                          Personnel Costs
                       Contracted                              25%
                      Services 13 %


                      Contribution to                          Purchases 15%
                       Reserves &                       Grants 4 %
                       Allowances               Capital 4 %
                           34 %




                                                                                        5
            2006 – 2008 CAPITAL BUDGET OVERVIEW – EXPENDITURES

The City’s capital budget provides for major maintenance expenditures and building of
new infrastructure and facilities. It balances all the needs of the community, including
aging of infrastructure, improving community image, maintaining quality of services and
continuous land development with available financial resources. The focus of the 2006-
2008 capital budget will continue to be:

          Street Improvements
          Industrial Land Development
          Protective Services – Fire Hall Construction
          Park/Green Space/Playground Development
          Water Treatment Plant Upgrade
          Sewage System and Lagoon Upgrade
          Continued replacement of Corporate Fleet and Equipment

Capital Projects over the course of the next three years will be in excess of $18 million as
compared to $17 million in 2005. Major capital projects include, but are not limited to:

          Various Road Projects                                         $4,656,200
          Parks and Recreation Projects                                 $2,039,527
          Equipment Upgrade and Replacement                             $2,221,261
          Industrial Land Development                                   $2,300,000
          Water Systems Enhancements/Upgrades                           $1,117,957
          Sewage Lagoon Upgrade                                         $3,636,419
          Protective Services Equipment/Fire Hall                       $2,087,862



                               2006 - 2008 Capital Spending


                                    Parks and
                                                               Land 12%
                                    Recreation   All Other
                                      11%            4%
                   Transportation                                  Protective
                       12%                                        Services 11%

                           Engineering
                              25%                            Utilities 25%




                                                                                          6
The majority of the funding, $9,127,725 for the 2006-2008 Capital projects will be from
Grants, $614,800 will be from Long Term Debt, 3rd party contributions will contribute
$2,190,661, and Reserves will contribute $4,725,428 with the balance of the funding
being contributed from operations and 10-year capital plan contributions.

In addition to the three year operating and capital budgets, Council also approved a 10
Year capital plan for the years 2006 – 2015. This 10-year Capital plan includes estimated
project costs of $52,665,561. The projects identified in the 10-year plan may move from
year to year depending on service levels and priorities. The plan will be updated annually
to allow the City to properly manage financing both for today and into the future.

Project costs for 2009 – 2015 are estimated at $ 33,761,557.

A 20 year Equipment Replacement schedule forms part of this plan and deals specifically
with the corporation’s fleet and equipment replacement needs for the future.

With the change in status of Brooks to that of a City, transfer of ownership and
responsibility of the secondary highways from the Province of Alberta to the City of
Brooks shall occur. There are two secondary highways within our boundaries Highway
#873 and Highway #542 totaling approximately 9.3 kilometers. Maintenance and capital
improvements for these roadways shall become our responsibility. At the time of this
publication, negotiations have not been concluded; thereby these future costs do not form
a part of this budget.


Land Development for residential, industrial and commercial properties has been a
priority of Council for a number of years. Council has made great strides in this area with
the completion of two Industrial Subdivisions, development of several residential
subdivisions in the SE sector as well as a commercial park along the Cassils Road
Interchange. In this three year budget there has only been one major project identified
and that is a third Industrial Subdivision in partnership with the EID. All other land
development projects that may be identified and required during the course of this
budget, shall be handled by budget adjustment and funding shall come from the Land
Development Reserve.




                                                                                         7
                                  MUNICIPAL COMPARISONS:

The City of Brooks subscribes to a study whereby annual data derived from the financial
reports submitted by municipalities to Alberta Municipal Affairs and from the province’s
assessment records and other statistical records are used to create benchmarks for the
municipalities in this province.

The following graph’s compare the City of Brooks with other towns and cities of
comparable size as relates to Residential Taxes, Utility Charges, Long Term Debt
Charges and Reserves (per capita).




                 Residential Taxes (2003) and Utility Charges (2004) Per Dwelling
                                  ($100,000 in live assessment)

        3,000
        2,500
        2,000
        1,500
        1,000
          500
            0



                                                                                           E
                                                            AN




                                                                           IN
                             SE




                                                           ER
                  KS




                                       E


                                                           KE




                                                            N


                                                                           C




                                                                                          AG
                                     AN




                                                                         W
                                                         TO


                                                                        DU
                                                        EW
                           RO
                 O




                                                         IV
                                                        LA




                                                                                        ER
                                                                       KI
                O




                                  HR




                                                      IN
                                                       R




                                                                      LE
                                                     H




                                                                     AS
                         AM




                                           LD
            BR




                                                                                      AV
                                                    H
                                                   H
                                                   C
                                 C




                                                 IG




                                                                  ET
                                                AT
                                          O
                        C


                                O




                                                                                  N
                                       C
                             C




                                               H




                                                                 W
                                              SK




                                                                                  W
                                                                                TO
                                            SA




                                                                              L
                                          RT




                                                                           AL
                                       FO




                                                                                               8
                                                              Long Term Debt Per Capita

             1,000
               900
               800
               700
               600
               500
               400
               300
               200
               100
                 0




                                                                                     E
                                                                                   AN




                                                                                    IN
                                                    SE




                                                                                   ER
                               KS




                                                                                    E

                                                                                   KE




                                                                                    N


                                                                                    C




                                                                                  AG
                                                          AN




                                                                                 TO




                                                                                  W
                                                                                DU
                                                                               EW
                                                RO
                              O




                                                                                IV
                                                                               LA




                                                                               KI




                                                                              ER
                             O




                                                         HR




                                                                              IN

                                                                             LE
                                                                              R




                                                                            AS
                                                                             H
                                               AM
                           BR




                                                               LD




                                                                          AV
                                                                            H
                                                                            H
                                                                           C
                                                      C




                                                                         IG




                                                                         ET
                                                                        AT
                                                              O
                                            C


                                                     O




                                                                        N
                                                              C
                                                    C




                                                                       H




                                                                       W
                                                                      SK




                                                                      W
                                                                   TO
                                                                   SA




                                                                 L
                                                              RT




                                                              AL
                                                          FO




The City’s per capita debt load changed in 2005 to $512.00 from $252.00 per capita
due in part to the Lakeside Leisure Centre expansion.

                                                                    Per Capita Reserves


                                   $1,200



                                   $1,000
                 eserves




                                     $800
      A ount of R




                                     $600
       m




                                     $400



                                     $200



                                     $-
                                           N




                                                                                                                   R
                                                                               IN
                                                                               IN
                                                        E



                                                       S




                                                                                                                   N
                                                                                E
                                                                              KE




                                                                                                      E
                                          A




                                                                               S




                                                                                                                  E
                                                     AN




                                                      K
                                         W




                                                                                                                TO
                                                                             R




                                                                                                     B
                                                                            IW




                                                                            LA
                                                                             K




                                                                                                                IV
                                                    TO




                                                                           LA




                                                                                                    M
                                                                            O
                                                                            O
                                        E




                                                    R




                                                                           P




                                                                                                              IN
                                                                         SK




                                                                                                               R
                                                                          M




                                                                                                   O
                                                                          O
                                       H




                                                   H



                                                  O




                                                                       LD




                                                                         Y




                                                                                                  C
                                                                        N
                                                                        R




                                                                                                             H
                                      C




                                                                                                             H
                                                 C




                                                                      TA
                                                 K




                                                                       N



                                                                                                LA
                                                                       A
                                                                       B




                                                                                                           IG
                                    AT




                                                O




                                                                      O
                                                O




                                                                    TO
                                                                     C
                                                                     E
                                               C




                                                                    C




                                                                                                          H
                                   K




                                                                   W




                                                                   S
                                 AS
                                S
                              T
                             R
                           FO




                                                                               Towns & Cities


      The average amount of reserves kept per-capita averaged to $569 for cities and
      $553 for towns in 2002. Brooks was at $998 in 2003 and $713 at the end of 2004.


                                                                                                                       9

								
To top